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Kenston treasurer: five-year forecast shows short-term surplus after rightsizing, longer-term pressure ahead
Summary
Treasurer Seth Kales told the Kenston Board of Education on May 12 that rightsizing and staff attrition produced roughly $361,922 in projected year‑end savings and removed deficit spending this year and next, but the five‑year forecast still projects deficits in the latter years and faces uncertainty from House Bill 96 and enrollment trends.
Kenston Board of Education Treasurer Seth Kales told the board on May 12 that the district’s five‑year financial forecast now shows a modest surplus this year after staffing changes and other savings, but projected deficits return in later years without additional revenue.
Kales said the district expects to end the current fiscal year about $361,922 better than its prior projection and that creative staffing and attrition produced roughly $750,000 in savings. “A financial forecast is a dynamic fiscal management tool,” Kales told the board. “It’s a living document.”
The forecast focuses on the general fund and assumes negotiated base wage increases built into current contracts; it shows Kenston relying heavily on local property tax revenue (projected to increase from about 69.2% to 71.3% of general‑fund revenue by 2029). Kales said the district will not deficit‑spend this year or next, but expects expenditures to outpace revenues in 2027–29 unless further action is taken. He noted a projected modest increase in cash balance this year, then a gradual decline as inflation and other cost pressures mount.
Kales flagged uncertainty from pending state actions, specifically the version of House Bill 96 pending in the Senate and provisions tied to the Fair School Funding Plan. He also highlighted statewide enrollment declines and benefits cost volatility as risks. “There are many uncertainties with the bill,” Kales said, adding that the forecast will be updated as legislative and economic conditions change.
Board members voted to approve the financial consent items (agenda items 9.1–9.6) covering the forecast and related transactions. The motion to approve those items was made by Board Member Dennis Berganski and seconded by Board Member Jen Chapman; the roll call vote recorded all members present voting yes.
Kales said the district will continue to pursue grants, reassess third‑party contracts, and align staffing through attrition to stretch existing levy revenue. He also said the administration plans to publish the forecast assumptions and supporting detail on the district finance web page and to offer meetings for community members who want additional explanation.
The treasurer recommended using the forecast as a planning tool and acknowledged that longer‑term stability may require a future operating levy if expenditures continue to outpace revenues despite further efficiency efforts.
Clarifying detail: Kales reported an estimated $750,000 in savings produced by absorbing positions through attrition and schedule changes, producing a net projected cash increase of $361,922 for the forecast year; days cash on hand was reported at 69 in 2024 and is projected to remain above the board’s 30‑day policy through the near term. He said the house‑passed budget produced a modest increase for the district (about $35,000), but the senate version of HB 96 could change assumptions.
